On November 14th, Bilibili (hereinafter referred to as "Bilibili") announced its financial report for the third quarter of 2024. According to the financial report, Bilibili achieved a revenue of 7.31 billion yuan in the third quarter, a year-on-year increase of 26%; The net loss was 79.8 million yuan, a year-on-year decrease of 94%; After adjustment, the net profit was 236 million yuan, compared to a net loss of 863 million yuan in the same period last year.
Specifically, advertising and gaming businesses drove revenue and profit growth in this quarter. In the third quarter, Bilibili's advertising business revenue was 2.09 billion yuan, a year-on-year increase of 28%, and its gaming business revenue was 1.82 billion yuan, a year-on-year increase of 84%. This led to a significant increase in Bilibili's gross profit by 76% year-on-year, and the gross profit margin increased to 34.9% month on month for nine consecutive quarters.
In the third quarter, the average daily active users of Bilibili reached 107 million, with an average monthly active users of 348 million. The average daily usage time increased from 100 minutes in the same period last year to 106 minutes.
The industry is not surprised that Bilibili has turned losses into profits this time. As early as the release of the second quarter financial report, Dolphin Investment Research believed that in the third quarter, the high advertising investment in the game "Three Kingdoms: Conquering the World" (hereinafter referred to as "Three Strategies") and the summer game battle was put down, and it was expected that Bilibili would turn losses into profits. In mid October, Bank of Communications International released a research report maintaining Bilibili's profit forecast for the third quarter of this year, with an estimated adjusted net profit of 280 million yuan. The bank also mentioned that Bilibili's game "San Mou" exceeded expectations in terms of revenue.
Previously, Chen Rui, Chairman and CEO of Bilibili, had set multiple goals to achieve breakeven by 2024. Recently, during the Q4 and annual performance conference calls in 2023, Chen Rui stated that he is confident that his Q3 profits will turn positive in 2024 and begin to generate profits. Earlier, during a conference call in early 2022, Bilibili management announced that Bilibili will achieve non GAAP breakeven in 2024.
For this financial report, Chen Rui stated that the community ecosystem and commercial revenue maintained strong growth in the third quarter, and achieved a single quarter profit for the first time. In the future, we will never forget our original intention and provide users with high-quality content, which is the unique value of Bilibili.
Bilibili has been continuously losing money in the past few years. With changes in the overall environment, in recent years, the management has frequently mentioned "reducing losses" and improving financial conditions as the most important work to do. In 2023, Bilibili's revenue was 22.5 billion yuan, with a net loss of 4.8 billion yuan, significantly narrowing the loss by 36%. By the second quarter of 2024, Bilibili's net loss will be 608 million yuan, a year-on-year decrease of 61%.
As of September 30, 2024, Bilibili held a total of RMB 15.23 billion in cash and cash equivalents, term deposits, and short-term investments.
On November 14th, Bilibili Hong Kong Stock Exchange (09626) reported HKD 162.4 per share, down 3.79%, with a total market value of HKD 68.41 billion.